AUTOMECH AKHBAR EL YOM 2011 Provides Access to 1.5 billion Customers in the MENA Market

The region of the Middle East and North Africa (MENA) is undergoing a remarkable transformation, driven by rapid GDP growth, which is set to outpace global growth potential reflecting a vast, promising consumer market. Within the next decade, MENA's vast consumer market is projected to double in approximately 17 years, while the EU market is expected to double in approximately 86 years.

The MENA region is a fast-growing market for the automobile industry. Vehicles, automotive parts, accessories and components represent a multi million-dollar trade in MENA countries which have the highest cars-per-household average in the world. The automotive aftermarket segment in the region is valued over $ 11 billion per year, while the region's commercial vehicle segment will grow by over 33% by 2012.

Throughout the Middle East and particularly in Egypt, the fastest growing automotive market in the MENA region, government policies are encouraging the expansion and modernization of workshops and service stations. Meanwhile, automobile users in the region prefer to use authentic parts. The main suppliers of automotive parts and maintenance equipment are U.S., Germany, Italy and East Asian countries.

MENA AGGREGATE DATA

The Egyptian Automotive Market……Promising Opportunities:

The Egyptian market is a key market with a population of 82 millions, its leading position in Middle Eastern affairs, and its central location bridging three continents: Europe, Asia, and Africa. The Egyptian market is a vibrant, growing, and politically stable market.

Egypt also has the second largest economy in the region after Saudi Arabia with relatively low wages, giving the Egyptian labor-force a competitive advantage.

Out of 22 million vehicles in the whole Arab region, about 6 millions are moving in the Egyptian streets, 32%of which are more than 20 years old. On the other hand, the Egyptian vehicle market is experiencing a steady increase of average 200,000 units per year. A recent report presented by the Chairman of AMIC (Automotive Marketing Information Council) in September 2009 predicts that total vehicle sales in the Egyptian market are expected to reach an estimated 3,491,144 units during the next ten years. Starting with taxis, heading for microbuses and trailers, old car replacement projects motivates domestic vehicle production.

The Egyptian automotive industry and its feeding industries (parts, service, repair, financial service, etc.) has advanced rapidly in the last ten years as the number of locally assembled cars has increased, including several that began exporting. Currently there are 46,000 of workers in the automotive industry, 16,000 in assembly plants and 30,000 in feeding industries. The 29 assembly plants working in Egypt 12 of which are for passenger vehicles, 9 for trucks and 8 for buses. The car-per-household average is 34 for each 1000 citizens, which indicates great potentials for growth at the automotive sector.

Many auto manufacturers, including General Motors, Mercedes, Peugeot, Hyundai, Suzuki, BMW, Citroen and others have established assembly plants in Egypt, thanks to the lowest-in-the world power prices and new government incentives for investment, In addition to customs reduction and other fiscal reforms taken recently since the new business-oriented cabinet was appointed in 2004.

The current government announced in February 2010 an ambitious plan to increase production to more than 500,000 by 2020, nearly half of which to be dedicated to exportation. Although the domestic market for new cars is growing in the years ahead, analysts are predicting that the best investment opportunities will still be in the export-oriented automotive feeding industries.

Taking the ride, the Egyptian government is planning to establish an industrial zone in 6th oh October City (suburban southern Cairo), where 180 factories for feeding industries are to be established with USD$ 1 billion investments within the next four years. The main purpose of the project is to be an export-oriented zone to serve regional Arab & African countries, and thus transferring Egypt to a regional hub for automotive feeding industries and a global exporting point for several car brands.